There has been a lot of news lately about APRA (Australian Prudential Regulation Authority) putting pressure on the Banks to limit lending to residential property investors. APRA is a Federal Government body that is the prudential regulator of Banks, Insurance Companies, Superannuation Funds, Credit Unions and Building Societies.
What effect has this had on lenders?
This has had very little effect on my clients. People with interest only facilities have had their rates increased, but my clients with principal and interest have not been affected.
The rationale behind all of this is to keep investors out of the market and make more houses available for first homebuyers but, honestly, I wonder what planet these bureaucrats live on!
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Price is Determined by Supply and Demand
I have often written, in my blog posts, that the price of everything is due to supply and demand. If investors do hold off and less residential investment properties are built, what will happen to rents? The demand for rent will increase as the supply decreases, rents will go up. As rents increase so will the value of the houses.
My prediction of the Brisbane Market taking off is coming to fruition. Most analysts are predicting an increase in Brisbane prices of 13-15% in the next 3 years and I feel this is conservative. If you have been waiting to buy in Brisbane, wait no longer.
Interested in enquiring about investing in property and would like to know ‘how it works’? Please contact our office to schedule a free, no obligation consultation and find out if our service is suitable to your needs.
Steve Taylor
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed.